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The idea is to create the entity BEFOR the ticket is cashed, as though the partnership BOUGHT the ticket and each has an ownership right to his portion of the proceeds. This bypasses the Estate/Gift/Income taxes of the ticket holder for the amounts won by his "friends". ed

Actually, the entity has to exist before the winning numbers are picked (and perhaps even before the ticket is purchased), not before the ticket is cashed. You were right in your other post that there are professional advisors who can help someone accomplish this after the fact, but it should be noted that what they are doing is illegal.

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